Industry News

Why Are Local Authorities Penalising Hair and Beauty Businesses?

by chloe / last updated February 15, 2022

Salon team working on client

In the name of the industry, the British Beauty Council (BBCo) and National Hair & Beauty Federation (NHBF) have joined forces to send an open letter to Chancellor Rt Hon Rishi Sunak MP. Recent reports revealed over 60 local authorities are excluding hair and beauty businesses from claiming the Additional Restrictions Grant (ARG).

Despite reassurance from HM Treasury that businesses in the hair & beauty sector are all eligible for the ARG, the BBCo, NHBF and other sector bodies are continuing to receive reports that these local authorities are either rejecting or not prioritising claims from these businesses. Several local authorities are also still working out their grant policies since the announcement in December and have yet to make grants available to businesses desperate for support.

The joint letter was sent on behalf of the National Hair and Beauty Federation, British Beauty Council, UK Spa Association, British Association of Beauty Therapy & Cosmetology, Hair & Barber Council and the Federation of Holistic Therapists.

Know your worth

In the past, the government has stated that the hair and beauty sector is ‘essential’ to the UK’s health and wellbeing whilst contributing almost £30 billion to the UK economy every year and employing 590,500 workers, mostly women and young people, across the UK. Pre-Covid, the sector was in the top three fastest-growing parts of the retail sector. So, where’s the help when we need it?

The hair and beauty sector has taken one of the hardest hits by the pandemic. The latest NHBF snap poll shows over 84% of hair & beauty salons and barbershops experienced reduced business compared with what would normally be expected between Christmas and New Year (28-31 December 2021). Furthermore, staff shortages due to COVID or self-isolation continue to impact businesses with 54% reporting staff absences during this period.

BBCo and NHBF stand together

Richard Lambert, NHBF chief executive says, “Whilst we appreciate that each local authority is entitled to their own criteria stating which businesses receive ARG assistance, and that funding will not meet the needs of all businesses affected, it does appear that a significant number are actively excluding hair & beauty salons and barbershops in their area. This raises the question as to why – is it because, despite all the evidence, they don’t accept these businesses were badly hit by the Omicron surge? Or perhaps because they just don’t think they’re that important.”

The British Beauty Council’s CEO, Millie Kendall OBE says, “Having made a strong case to all local authorities as to how personal care has been impacted more heavily than many other business sectors, we would have hoped to see some movement with regards to the release of the ARG funds to salons etc. The Chancellor himself stated that our industry was not just economically valuable but also essential to Britain’s wellbeing. Whilst our previous work ensured personal care businesses were highlighted within guidance as businesses that should be considered for support, local authorities have chosen to disregard this. They clearly do not regard our industry as essential, or the local businesses that operate within them as worthy of support and we would like to know why?”

The industry fights back

The NHBF and BBCo are urging all hair & beauty salons and barbershops in to send a message to their local authority to ask why they are excluding fellow businesses in the personal care sector from this much needed financial help.

Don’t be afraid to make noise and fight for your business. If HJ knows one thing about this industry, it’s that we won’t let this oversight slip under the rug.

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